In brief

Although the public health fallout from the coronavirus pandemic will be limited in Curaçao, the economic impact will be severe. A gradual lifting of lockdown measures will do little to offset a sharp dip in external demand as a global recession takes hold. Deteriorating economic conditions will give rise to wider fiscal and current-account deficits. We expect Dutch financial assistance to be forthcoming, helping to contain balance-of-payments and budgetary pressures.